San Diego Real Estate and Coastal Homes for Sale

Short sales are the hottest thing going in the distressed-property market, and the trend is expected to get even hotter in coming weeks, when the government starts handing out cash to encourage lenders to close these deals.

"Banks have ramped up short sale approvals," said Duane Legate of House Buyer Network, which connects short sellers with buyers. "They're hiring a lot of the people who once worked in the mortgage-lending industry and moved them over to short sales."

These transactions, where lenders allow homeowners to sell their houses for less than they owe, accounted for 17% of all residential real estate sales in February, up from nearly 13% in November, according to a monthly real estate market survey by Campbell/Inside Mortgage Finance.

And Bank of America (BAC, Fortune 500), the country's largest mortgage servicer, has more than doubled the number of short sales it processed in recent months.

Elizabeth Weintraub, a Sacramento, Calif.-area real estate agent who handles many short sales, was amazed at how quickly a recent deal went through. "Bank of America approved it in 24 days," she said. "That flipped me out."

This is a huge change from even just six months ago when the short-sale market was stalled and most people would describe the process has real estate hell. Because lenders stand to lose so much on these transactions, they have been reluctant to make short sales happen, often waiting months before getting back to potential buyers.

Beware: You lost your house but still have to pay

"In the past, many short sales would never come to fruition and the ones that did averaged over half a year to complete," said Chris Saitta, CEO of Equator, which produces short sale software.

"Things would just fall into a black hole and not come out again," added Weintraub.

And even when banks did agree to the sale, the process could be further complicated if the original owner had a second mortgage.

In most cases, the first lender is repaid in full before any money flows to a second-lein holder. And because most distressed borrowers are severely underwater, there's usually nothing left to send on. As a result, second-lein holders are left holding the bag and have been killing many deals.

But that has been changing. For one thing, banks realize that they make out far better financially with a short sale than a foreclosure. "The lenders lose 50% on a foreclosure and only 30% on a short sale," said Glenn Kelman, founder of the real estate Web site Redfin. "And short sales offer a way to get distressed properties off their books quickly."

And on April 5, lenders and mortgage investors will have even more incentives to offer troubled borrowers short sales instead of foreclosing.

Under the new Home Affordable Foreclosure Alternatives program, borrowers will earn a $3,000 "relocation incentive" and servicers will get $1,500 for handling a short sale.

The investors who actually own the mortgage notes will get $2,000 in exchange for sharing proceeds of the short sales with any second-lien holders. And, finally, those second lien holders will receive up to $6,000 for releasing their claims.

Lenders participating in the program must also determine the market values of properties early on and inform the owners of just what price they're willing to accept. Then, if owners come back to the lenders with bonafide offers, they have to be accepted within 10 days.

Equator's Saiita anticipates a short sale explosion in response to the new program. "The challenge will be handling all the volume," he said.

The company has already tweaked its software, which 58 servicers use, to handle the new HAFA rules. And that should help reduce the time it takes to execute a sale, which currently averages 88 days.

The boom in short sales may accelerate the end to the foreclosure crisis by cleaning out the overhang of borrowers in distress and replacing them with more stable homeowners.

Plus, these sales are better for distressed borrowers because their credit scores suffer less. Going through a foreclosure can knock 200 points off a FICO score, twice as much as the penalty for a short sale.

Vintage houses which are highly maintained and located in a good location are a treasure to find in today's real estate market. Luckily for the new owners of 1245 Park Row, they have found a La Jolla luxury home that is worth the $1,650,000 they have paid for it

Built in 1921, this breathtaking luxury home is located in the desirable La Jolla village neighbourhood. Given the expansive front yard, a new home can easily be built on it or the existing building can be remodelled to fit the owners' needs. With this massive space, plans can be drawn for a house that measures at least 4000 square feet!

This La Jolla luxury family home boasts of three cozy bedrooms and one optional bedroom within the estimated 1,909 square feet of existing living space. An elevator is used to go from one storey to another. The carpet, wood and tile floorwork, as well as the fireplace, also add charm to this elegant home.

Not only does this La Jolla luxury home have a spacious yard and interior, it also has an outstanding view. Going into the second storey of the house provides a marvellous view of the ocean. A balcony also gives a romantic and relaxing ambiance to this La Jolla luxury home, making it a truly enviable investment.

San Diego County Single Family Homes Sales

• There were a total of 1,274 sold listings in February which is 9.639 percent high from January and 5.138 percent low for the same month last year.
• The median sales price for the San Diego County was $370,000 which is 1.640 percent improvement from the previous month or 10.440 percent from the previous year.
• With an average sales price of $480,962, there was a significant increase of 21.291 percent last year with 74 average days on the market.

San Diego County Condominiums/Townhomes Sales

• Total of 708 attached listings were sold in February which is a 6.626 percent growth from the same month last year but -3.673 percent from the prior month.
• Median sales price were $215,000 which is 2.38 percent increase from the prior month and 16.21 percent increase last year.
• Average sales price was $257,687 that is 8.213 percent above the last year's sales level with 76 average days on the market.

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Having a relaxing and comfortable place to come home to in the middle of a busy city is truly a luxury that a few people have the privilege to experience. This is why owning the breathtaking La Jolla luxury home in 1705 Calle de Primra is definitely good fortune for its new owners.

Built in the beautiful neighbourhood of Alta La Jolla South, this ranch style home measures an estimated 2,710 square feet. The spacious four bedrooms and three baths make living in this home a relaxing experience. Although built in 1976, this luxury home has been remodelled and modern amenities have been installed. In fact, it boasts of a gourmet kitchen that is worthy of a professional chef, with its combination of state of the art kitchen appliances and charming design.

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Situated on top of Mt Soledad, this La Jolla luxury home faces south providing it with a panoramic view of its surroundings. This one-storey house has a spectacular view of the downtown cityscape and lights, and the Coronado Bridge. For those who crave for a natural ambiance, a view of the beautiful San Diego coastline and mountains is also visible.

This combination of modern and vintage, contemporary and natural makes this La Jolla luxury real estate a one of a kind real estate find.

Very few individuals have the luck of finding a home that not only has a desirable location but also a level of functionality and a relaxing atmosphere. This is why the new owners of 7141 Fay Ave Dr became really fortunate when they purchased this La Jolla luxury home for only $1,719,000!

Situated within a short distance from the Village Point and Park, this four-storey townhome has an enviable view of the La Jolla Country Club golf course. Almost every room in the house has a sweeping view of the ocean, creating a quiet and relaxing atmosphere that is the epitome of luxury living.

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The interior of this La Jolla luxury home is as impressive as its panoramic views. Built in 2003, the fixtures of this attached home have already been upgraded. A cozy air in invoked with the charming window shutters, granite countertops and cherry cabinets. Three bedrooms, four baths and an office add functionality to this La Jolla home's desirable features. A wine closet is a welcome addition for those who love entertaining guests in their home.

The balcony and deck areas create comfortable moments where you can really appreciate the charm and beauty of this La Jolla luxury real estate.